Commercial litigation involves resolving business disputes through the court system. If you own a business, understanding the litigation process can help you prepare for potential legal challenges. Knowing each step can help you make informed decisions along the way.
Filing the complaint
The process begins when the plaintiff files a complaint outlining the claims against the defendant. In New York, the complaint must state the facts supporting the claims and specify the legal relief sought. The plaintiff must serve the complaint to the defendant within 120 days of filing, following New York Civil Practice Law and Rules (CPLR) requirements.
The defendant’s response
After receiving the complaint, the defendant has 20 or 30 days to respond, depending on the method of service. The response can include an answer addressing each claim, affirmative defenses, or a motion to dismiss. A motion to dismiss challenges the legal sufficiency of the complaint, potentially ending the case before proceeding further.
Discovery process
Discovery allows both parties to gather evidence to support their claims or defenses. This phase includes document requests, depositions, and interrogatories. New York law requires full disclosure of relevant materials unless a privilege applies. The length of discovery depends on the complexity of the case but often takes several months to a year.
Pre-trial motions
Either party can file motions before trial to resolve certain issues. Common pre-trial motions include summary judgment motions, which ask the court to decide the case without a trial if there are no material facts in dispute. Courts may also consider motions to exclude evidence or compel discovery compliance.
Trial and judgment
If the case proceeds to trial, both sides present evidence, examine witnesses, and make legal arguments. In New York, commercial disputes may be tried before a judge or a jury, depending on the circumstances. After the trial, the court issues a judgment determining the outcome.
Appeals and enforcement
If a party disagrees with the judgment, they may appeal to a higher court. You must file appeals within 30 days of the decision. If no appeal is filed, the winning party may take steps to enforce the judgment, such as garnishing wages or placing liens on property.
Understanding these steps can help businesses prepare for commercial litigation and manage legal risks effectively.
